The Influence of Good Corporate Governance on Company Failure (Case Study of PT Rabobank International Indonesia)
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In order to support economic growth, implementing good corporate governance has a positive impact on the long-term viability of a company's operations, protects stakeholders' interests, and enhances compliance with laws and regulations. This study intends to examine the impact of good corporate governance on business failure. This research focuses on PT Rabobank International Indonesia to analyze aspects of the governance system, including governance structure, governance processes, and governance outcomes on 11 factors based on the principles of exemplary corporate governance implementation. The research method employs qualitative data in the form of 2018 and 2019 annual financial reports, including governance reports, financial reports from the website of the Financial Services Authority, and other secondary data to analyze governance reports and financial reports, given that PT Rabobank International Indonesia will cease operations in Indonesia in 2020. The research results on governance reports are listed in the annual report of PT Rabobank International, based on an analysis of governance structure and governance process, on the outcome of governance. PT Rabobank International Indonesia experienced significant losses, decreased risk profile ratings due to the trend of the non-performing loan ratio, and a decline in the category of Banks in the business activities from BUKU II to BUKU I, so it can be concluded that the implementation of good corporate governance affects the ongoing business of the Bank. The advantage of this study is that the Bank has a governance implementation based on regulator regulations and benchmarks with international governance regulations.
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